TDS on resale software

Mahendra Tukaram Chodankar (Accountant) (67 Points)

20 May 2011  

hi



we are dealing into it hardware and software resale. we purchased the softwares from the distributor and sell it to our end customer. till date none of our customer have deducted the tds on the software. all our software billings are done with vat and service tax.

now one of our customer has deducted the tds under section 94 J.

kindly clarify is he justified in deducting the tds and if yes, why?. kindly shares your views with circulars or notification if any.

 

Regards

Mahendra